EUR rising following thin US data

EUR rising following thin US data

The Euro is enjoying a fair move higher today, aided by a drop in the US dollar following some softer than expected data from across the Atlantic. There have been reports this afternoon in Germany’s Der Spiegel that the ECB is planning to withdraw from its expansionary monetary policy. The newspaper reports that from July onwards, central bank officials will signal to the public and the markets that downside risks have diminished and that inflation is headed towards target.
They also expect that sometime in Autumn the ECB will unveil the particulars as to how it will exit from its current asset buying program. The current level of QE (60B) is predicted to be tapered in steps of 10-20B euros and then close to the end of 2018 the plan is to raise rates.
It should be made clear that this is conjecture at present and whilst the reports cite sources from the ECB these have not been confirmed.
The EURUSD has moved back above the 1.09 handle this afternoon and is not far from prior resistance at 1.0950.
From the US perspective we’ve also had some more comments from Evans that have added to earlier quotes that can be found here. Evans has also stated that he may be ok with one hike if the inflation outlook is uncertain and that he sees a lot of uncertainty over Trump tax proposals. The overall tone of these latest comments are similar to his earlier ones in being fairly dovish.

About Author

Our research team will provide all technical and fundamental news as well as all inside information coming from London's City desks to help investors trade fx and stock markets. Be sure that you already follow our twitter account @XMarketsuk in order to be up to date with all latest analysis, news and inside information.

Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. X Markets and XSpot. do not take into account your personal investment objectives or financial situation. X Markets and XSpot. make no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any member of X Markets Websites’ team, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of X Markets and XSpot. This communication must not be reproduced or further distributed without prior permission.

Risk Warning: Forex (FX) and Contracts for Difference (’CFDs’) are complex financial products that are traded on margin. Trading FX and CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, FX and CFDs may not be suitable for all investors because you may lose all your invested capital. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved taking into account your investment objectives and level of experience. Past performance of FX and CFDs is not a reliable indicator of future results. Most FX and CFDs have no set maturity date. Hence, a CFD position matures on the date you choose to close an existing open position. Seek independent advice.